Tomfoolery
Registered user
Anyone know how reasonable the finance is with BMW?
Bearing in mind my credit rating is shocking...
Bearing in mind my credit rating is shocking...
BMW Finance
- Thread starter Tomfoolery
- Start date
Qmouse
Registered user
The intrest with BMW is around 13%. Depending on how much you borrow you could do better elsewhere.
Brian
Brian
davedyer
Registered user
Much better - the lowest I got for my finance off the internet was 6.1% APR. It's all down to how you want to go. BMW offer more options including their lease plan which enables you to chop and change your bike every three years or so - not an option I was interested in. You can also tailor your monthly repayments to suit based on the deposit you pay.
Deleted Member I
Guest
BMW finance is ok but it has lots of charges which they don't tell you about until you sign on the dotted line.
A charge at the beginning (on top of deposit and first payment).
A charge at the end (on top of the final payment).
Currently I am with a company called Close Finance and the monthly rate incl the charges so no surprises. AND the monthly rate worked out better than BMW finance (without their charges).
BMW finance is probably like their bikes ... expensive. In this case though you do have alternatives even if you still want the bike.
A charge at the beginning (on top of deposit and first payment).
A charge at the end (on top of the final payment).
Currently I am with a company called Close Finance and the monthly rate incl the charges so no surprises. AND the monthly rate worked out better than BMW finance (without their charges).
BMW finance is probably like their bikes ... expensive. In this case though you do have alternatives even if you still want the bike.
APR
The only true way to compare finance is to find out the APR (annual percentage rate). Lots of places will try and tell you the flat rate or monthly rate or some other claptrap rate is the way to compare but only APR covers all the costs involved, start up fees, end fees etc. and can allow you to truly compare the full cost of the finance.
Davy
The only true way to compare finance is to find out the APR (annual percentage rate). Lots of places will try and tell you the flat rate or monthly rate or some other claptrap rate is the way to compare but only APR covers all the costs involved, start up fees, end fees etc. and can allow you to truly compare the full cost of the finance.
Davy
APR
But how is it calculated?
Do all finance companies use the same formula?
I remember seeing that there are differing ways, which can alter how much you pay per month, and make a mockery of "the only true way is to look at the APR". I'm sure that some of the dealers will be able to clarify this
But how is it calculated?
Do all finance companies use the same formula?
I remember seeing that there are differing ways, which can alter how much you pay per month, and make a mockery of "the only true way is to look at the APR". I'm sure that some of the dealers will be able to clarify this
The only figure for comparison that i look at is the TOTAL amount you have to pay back for a certain amount borrowed and the length of time it is to be paid back.
I gather the APR figures are manipulated to such an extent,yhey are not really useful comparators.
I gather the APR figures are manipulated to such an extent,yhey are not really useful comparators.
Tomfoolery
Registered user
Haha some stupid company has just agreed to give me £5000. I shall therefore be looking around for a 2nd hand 1150GS...just going to look at the 2nd hand stuff on this very forum...
This won't go down well with the PB lot...
This won't go down well with the PB lot...
There is only one true way to gauge how good a deal you are getting.........What the monthly payment is! Decide how much you want to finance and get quotes. APR's don't automatically give a direct reference to actual cost of borrowing. For example £5000 over 48 months might have an APR of 7.5% compared to the same amount over 24 months which might be as much as 15% although the amount of interest you pay per year is the same. APR rates do however cover all associated set up costs etc etc.
Flat rate quotes 'PAF' (per annum flat) are far easier to calculate but be careful. You may be quoted 5% PAF which sounds great but what PAF means is this....... The 5% is how much interest you will pay each year so for a 24 month aggreement will be charged 5% per year = 10%, 36 month = 15% 48 = 20% and so on. There are likley to be set up and closing fees added to flat rate borrowing so be on your guard.
My first statement holds, It's far easier to just compare monthly payments for a fixed sum over a fixed period. You then know how much you will pay in total over the whole period.
I work for a dealer and have this conversation all the time!
Be Lucky!
Flat rate quotes 'PAF' (per annum flat) are far easier to calculate but be careful. You may be quoted 5% PAF which sounds great but what PAF means is this....... The 5% is how much interest you will pay each year so for a 24 month aggreement will be charged 5% per year = 10%, 36 month = 15% 48 = 20% and so on. There are likley to be set up and closing fees added to flat rate borrowing so be on your guard.
My first statement holds, It's far easier to just compare monthly payments for a fixed sum over a fixed period. You then know how much you will pay in total over the whole period.
I work for a dealer and have this conversation all the time!
Be Lucky!
I understand that quite often the rate of interest reflects your credit rating
I recently got a Barclaycard loan for my R1200GS at 6.1%. £7,000 - 5 years - £136 a month. Only minor problem I have got is that I now need to get a job.
Student loan will cover it until next June
richie
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Start Excel and input
the value you would like to lend.
The number of months you would like to repay.
The interest rate divided by 12
then use the PMT funtion to work out the payments and therefore the total repayment.Easy and allows you to really see how much you should be paying.
example =PMT(A3/12;A2;A1)
A3 equals rate
A2 equals months
A1 equals amount
the value you would like to lend.
The number of months you would like to repay.
The interest rate divided by 12
then use the PMT funtion to work out the payments and therefore the total repayment.Easy and allows you to really see how much you should be paying.
example =PMT(A3/12;A2;A1)
A3 equals rate
A2 equals months
A1 equals amount
When i was thinking about trading my GS12 for a Megamoto,the dealer looked at a range of finance options (BMW,Black Horse + Close) and advised me the best deal was via Close Finance.As has been said already,check the final payment figure as the quick check.
DavidHale
Registered user
What's wrong with family credit?
Tomfoolery
Registered user
My Dad already gave me his old ZZR600 he put over 100,000 miles on...
That may be a hint...(see 'evening' thread in the newbies bit)
That may be a hint...(see 'evening' thread in the newbies bit)
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